Revenue up 54%
GeoEye Integration Ahead of Plan With 83% of Synergies Achieved
LONGMONT, CO -- 10/31/13 -- DigitalGlobe, Inc. a leading global provider of high-resolution earth imagery solutions, today reported financial results for the quarter ended September 30, 2013.
Third quarter 2013 revenue was $164.8 million, a 54% increase compared with the same period last year. The company reported a net loss for the third quarter of 2013 of $(1.8) million, and a net loss available to common shareholders of $(2.8) million, including $1.0 million of preferred stock dividends, or $(0.04) per diluted share, compared with net income available to common stockholders of $8.5 million or $0.18 per diluted share in the third quarter of 2012. Included in this quarter's result is $11.1 million of restructuring and integration expenses related to the combination with GeoEye.
Third quarter 2013 EBITDA was $54.5 million. Not including $11.1 million of restructuring and integration related to the combination with GeoEye yields Adjusted EBITDA of $65.6 million, with an associated margin of approximately 40%.
"We built significant momentum in the business during the third quarter -- accelerating growth, expanding margins and generating positive free cash flow," said Jeffrey R. Tarr, Chief Executive Officer. "I'm proud of our team's outstanding execution, achieving more than $100 million of synergy savings related to our combination with GeoEye. We remain confident in our ability to drive double-digit growth and to return to 50 percent EBITDA margin after we complete our 18 month integration process in the second half of 2014."
Third Quarter Business Highlights
U. S. Government revenue grew 53% to $100.8 million compared with third quarter 2012, including a 353% increase in value-added services to $37.6 million.
Diversified Commercial revenue grew 55% to $64 million in the quater compared with third quarter 2012.
Next 12-month backlog was $515.8 million, up 41% year over year, as the company continues to build improved revenue visibility across its customer relationships.
Among U. S. Government customers, the Company renewed and expanded the Global Enhanced GEOINT Delivery (G-EGD) program with the National Geospatial-Intelligence Agency (NGA).
The company received multiple awards serving government customers in Russia and Latin America to deliver environmental monitoring and base mapping services.
The company signed an agreement with a Non-Government Organization (NGO) to monitor oil theft activity in an African country and renewed a contract with the Satellite Sentinel Project to monitor human rights atrocities in the Sudan.
The company expects adjusted EBITDA of at least $228 million and an adjusted EBITDA margin of at least 36%. The company is targeting revenue at the bottom of its original range of $635 million to $660 million. Capital expenditures for the year are expected to be approximately $240 million.
"We are targeting $635 million in revenue, and have high confidence in our ability to deliver upon our original EBITDA margin guidance of 36% across a range of revenue scenarios," said Yancey Spruill, Chief Financial Officer.
Conference Call Information
DigitalGlobe's management will host a conference call today, October 31, 2013 at 12 p.m. ET to discuss its third quarter 2013 financial and operating results.
The conference call dial-in numbers are as follows:
U.S./Canada dial-in: (866) 863-0053
International dial-in: (706) 758-7563
A replay of the call will be available through November 29, 2013 at the following numbers:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
DigitalGlobe will also sponsor a live and archived webcast of the conference call on the Investor Relations portion of its website. Click here to directly access the live webcast.
Supplemental earnings materials are available on the Investor Relations section of the company's website at www.digitalglobe.com.
DigitalGlobe is a leading provider of commercial high-resolution earth observation and advanced geospatial solutions that help decision makers better understand our changing planet in order to save lives, resources and time. Sourced from the world's leading constellation, our imagery solutions deliver unmatched coverage and capacity to meet our customers' most demanding mission requirements. Each day customers in defense and intelligence, public safety, civil agencies, map making and analysis, environmental monitoring, oil and gas exploration, infrastructure management, navigation technology, and providers of location-based services depend on DigitalGlobe data, information, technology and expertise to gain actionable insight.
DigitalGlobe is a registered trademark of DigitalGlobe.